02/03/2026
Tensions in the Middle East increased over the weekend following strikes on Iran by the United States and Israel. This has added more uncertainty to global markets, and investors are watching developments closely as the situation unfolds.
Here’s what we know so far.
Oil prices have risen into the high US$70s per barrel as markets consider the possibility of supply disruption in the region. If important shipping routes, such as the Strait of Hormuz, were affected, prices could move higher. OPEC+ has indicated it plans to increase oil production from April to help support supply.
Share markets have eased slightly as investors weigh the potential impact of higher energy costs on inflation and company profits. During periods like this, it’s common to see money move toward assets generally viewed as more stable, such as government bonds and the US dollar.
Importantly, markets had already been expecting heightened tensions in recent weeks — so much of this risk was already reflected in prices.
At this stage, we’re seeing a typical short-term reaction to geopolitical uncertainty rather than signs of broader financial strain.
It’s also a timely reminder of something we recently explored:
Short-term market movements matter less than you think.
History shows that reacting to headlines can often do more harm than good. Market ups and downs are a normal part of investing — and staying committed to a well-diversified, long-term plan remains one of the most effective ways to build wealth over time.
You can read more here: https://bit.ly/3OGD9M0
At Aurora Capital, our diversified, multi-manager approach is designed to help smooth the journey through periods like this — so you can stay focused on what matters most: your long-term goals.
FundRock NZ Limited (FundRock) is the issuer and manager of the Aurora KiwiSaver Scheme. A Product Disclosure Statement is available from FundRock or Aurora Capital at www.aurora.co.nz.
DISCLAIMER
This information is provided in a general nature only and should not be relied on as financial advice. You should seek financial advice specific to your circumstances from a financial adviser before making investment decisions. Past performance is not a reliable indicator of future performance. The value of your investment may go up and down.
If you’d like to review your settings in the Aurora KiwiSaver Scheme or simply talk things through, we’re here to help.
